Polar Star Mining Corporation
TSX VENTURE : POS
PINK SHEETS : POSRF

Polar Star Mining Corporation

July 08, 2008 15:15 ET

Polar Star Announces Closing of $5 Million Private Placement

TORONTO, ONTARIO--(Marketwire - July 8, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Polar Star Mining Corporation (TSX VENTURE:POS)(PINK SHEETS:POSRF) ("Polar Star" or the "Company") announces the successful completion of its brokered private placement (the "Offering") of 7,415,400 units of the Company ("Units") for $0.65 per Unit, resulting in gross proceeds of $4,820,010 million. GMP Securities L.P. ("GMP") acted as agent on the Offering. Each Unit consists of one common share and one half of one warrant. Each whole warrant entitles the holder to subscribe for one common share for $1.00 per common share for a period of 18 months following the closing of the Offering. HudBay Minerals Inc. was the lead order in the Offering. Douglas Willock, President and CEO of Polar Star noted that HudBay's subscription for 9.9% of Polar Star's outstanding shares is a clear demonstration of their support of management's strategy to pursue opportunities in Chile and to realize the significant exploration potential within the company's current portfolio of properties. We very much appreciate their support and welcome them along with several new investors and existing shareholders who participated in this financing. In connection with their role as agent, GMP was issued compensation options which are exercisable to acquire 444,924 Units for a period of 18 months following the closing of the Offering at the Offering price, as well as a cash commission equal to 6% of the gross proceeds of the Offering. In addition, the Company has arranged additional non-brokered subscriptions for 277,000 Units for additional gross proceeds of $180,050, which the Company expects to close within the next 48 hours.

All securities issued in connection with the Offering will be subject to a restricted period until November 9, 2008.

Polar Star intends to use the net proceeds of the Offering to fund further exploration and development of its mineral properties in Chile and for general corporate purposes.

About HudBay Minerals Inc.

HudBay Minerals Inc. is a leading Canadian base metals mining company. Their focus today is on the discovery and production of zinc and copper metal. They are investing for the future in one of the most ambitious exploration programs in Canada, focusing on their 400,000 hectare mining property in the Flin Flon Greenstone Belt. As an integrated mining company, HudBay operate mines, concentrators and metal production facilities in northern Manitoba and Saskatchewan, a zinc oxide production facility in Ontario, the White Pine copper refinery in Michigan, and the Balmat zinc mine in New York state.

About Polar Star

Polar Star was created to acquire advanced stage exploration properties focusing on gold, copper gold and uranium. The Corporation's material assets include 20 projects in Chile which are 100% owned covering approximately 141,000 hectares.

Forward-Looking Statements

The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Polar Star Mining Corporation's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.polarstarmining.com.

Share Capitalization:

Shares Outstanding: 38,964,098 as at July 8, 2008, after completion of the announced financing (39,241,098 upon completion of the second Closing expected on or before July10, 2008).

Business Television Feature:

Polar Star was selected and featured on Business Television in early March 2008. If you missed the show, please click on the link below to watch the full-feature http://www.b-tv.com/i/videos/PolarStar.wmv.

The Toronto Stock Exchange Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release and the information contained herein.

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